The new currency Good Dollar is the basis of a new economic framework, the main difference between this currency and all other currencies are :
- Direct ownership connection between the entities and the currency (transparent money)
- Decreasing interest rates on larger deposits (Good Value or Good interest rates)
The first is actually the creation of a true “white market”, where all the money is always connected to the entities transacting it. This was not possible without the Internet and information warehouses, and is also probably the reason that Adam Smith and other economists did not consider it in previous analysis of economics.
Once all money is transparent, we believe that the invisible hand will become the visible hand, and the philanthropy bank could actually direct the economy to create more value. When people are asked what the “bad” thing in capitalism is (although it has a lot of good qualities), the most common answer is:
This is caused by what we consider to be the error in the existing economic framework, where the more money you have brings with it better interest rates (allowing you to make more money). This historical essence of this attribute is since aggregation of more funds in the pre-Internet era would require work and this work would devalue smaller sums.
Assuming that the administration of a new currency would be fully automated, small deposits should get at least the same interest rates as large ones, and eventually smaller deposits should receive higher interest rates than larger deposits, because:
- intrinsic individual/entity value (individual value)
The most important intrinsic value are of individuals, since we believe that human life has value, meaning that individuals should get better interest rates than any other entities, hence a better world for all individuals. As for other entities, the value should be derived from their added value to the world in a democratic way. Academic institutions, for example, should have higher intrinsic value than corporations, and should receive higher interest rates. Culture and education have added more value to the world than can/should be derived as direct payment.
Assuming that eventually all money is transparent and all his funds are in the system, an individual who has only $100 should receive higher interest rate since he needs more support to maintain his basic life necessities, while an individual that has $1M in deposit should receive a lower interest rate since he can add more value to the world through investments.
Capitalists would probably wonder why anyone would deposit a $1 M in this new currency if he is getting inferior interest rates than other currencies. There are 2 very good answers:
- For the greater good: people should understand the benefit of this framework to the better world and aspire to a better world
- For personal value gain: if we assume that the Good Dollar is a Giffen Good which can be economically proven, then the exchange rate of the currency will rise constantly until other currencies will adapt a similar framework: i.e – if you exchange $1M USD with $1M Good Dollars, the USD value of your deposit will constantly rise and you can exchange it back as equity profit.
It is essential to prove that the good dollar is a Giffen Good and we invite economists from around the world to suggest a complete proof. I will Shorty post a very rough Good Dollar proof framework, I hope that will be completed with the help of more economists.
Fortunately the technological era has provided more value to good genius people, and while speaking to several very rich people and hearing Bill Gates in Davos, I have no doubt that assuming that the framework is complete and true that they will be the first participants in the establishment of a better economic framework that will lead to a better world.
To summarize the characteristics of the Good Dollar :
- Its value is always rising
- It has an intrinsic mechanism that gives value to individuals, and the visible hand is spreading the wealth though value investments. Since there is no interest in aggregating money, all value is being directed to create more value through investments.
- It has an intrinsic mechanism that allows Good Value Debt, An individual with $1M can decide he wants better interest so he can separate it to 1000 “poor individuals” that receive higher interest rates. This is the actual form of good debt. now a 1000 “poor individuals” can give either some interest rate back to the “rich individual”, or any other value equivalent to the interest rate they are receiving from the debt.
A great example of an actual implementation of such practice is Kiva.org . In the good dollar framework the amazing concept of Kiva is inherently built in the currency and in the economic framework.